Accounting 2000 Final Exam - LSU With verified detailed answers

Accounting 2000 Final Exam - LSU With verified ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




detailed answers ||\\|//||




Advantage: simple to establish, control, tax advantages ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Disadvantage: Personal liability - correct answer✔✔sole proprietorship ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




two or more
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Advantages: simple to establish, broader skills and resources, tax advantages ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Disadvantage: Personal liability - correct answer✔✔partnership ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




separate legal entity ||\\|//|| ||\\|//||




Advantage: Easy to transfer ownership, easy to raise capital ($), no personal liability ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Disadvantage: Taxes, double taxation - correct answer✔✔corporation ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Accounting is the information system that _________, __________, and ____________ the ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




economic events of an organization to interested users. - correct answer✔✔identifies,
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records, communicate ||\\|//||




managers, supervisors, company officials ||\\|//|| ||\\|//|| ||\\|//||




used to plan, organize and run a business - correct answer✔✔internal (within)
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investors (potential shareholders), creditors (owe money), regulators, IRS
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decisions to buy or sell stock or loan company money - correct answer✔✔external
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(outside)



raising money ||\\|//||

, borrow money from creditor (creates debt) ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Issue (sell) shares of stock to investors - correct answer✔✔financing
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purchase of resources needed to operate; ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




resources owned and used by a business (computers, equipment, delivery trucks) - correct
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answer✔✔investing



day to day operations
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shoe store selling shoes, dentist cleaning teeth, lawn care company mowing lawns
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(revenues, expenses) - correct answer✔✔operating ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




basic accounting equation - correct answer✔✔Assets = Liabilities + Stockholders' Equity
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resources owned by a business - correct answer✔✔assets ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




cash, accounts receivable, inventory, supplies, property, plant and equipment - correct
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answer✔✔assets



amounts owed to creditors/suppliers - correct answer✔✔liability ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




accounts payable, notes payable, bond payable - correct answer✔✔liability
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owner's claims to assets - correct answer✔✔stockholders equity
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common stock and retained earnings - correct answer✔✔stockholders equity||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||